Boeing going vertical?
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Boeing going vertical?
(Reuters) - Boeing Co (BA.N) is doubling down on its landmark new strategy designed to muscle in on the business of maintenance providers by making its next jet the laboratory for in-house services that could radically alter the global business model for selling planes.
. . .
To support the strategy, Boeing is bringing back key in-house technology like avionics - the brains of a modern jet -partly with an eye to future aftermarket revenue.
. . .
The downside of doing more by itself, suppliers and analysts say, is that Boeing could weaken access to outside innovation, import risk and tie up capital and finite engineering resources.
. . .
To support the strategy, Boeing is bringing back key in-house technology like avionics - the brains of a modern jet -partly with an eye to future aftermarket revenue.
. . .
The downside of doing more by itself, suppliers and analysts say, is that Boeing could weaken access to outside innovation, import risk and tie up capital and finite engineering resources.
https://www.reuters.com/article/us-b...-idUSKCN1GP0DD
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BCE redo?
This seems a bit of an odd strategy. manufacturers, such as engines, eat development costs because they know they get far more return on the maint.
I would suspect that enthusiasm for future development by outside manufacturers would slow a bit?
This seems a bit of an odd strategy. manufacturers, such as engines, eat development costs because they know they get far more return on the maint.
I would suspect that enthusiasm for future development by outside manufacturers would slow a bit?
A lot of the 'in-sourcing' that Boeing is currently doing (or at least evaluating) is simply reversing the out-sourcing that Condit and Stonecypher did. In other words, correcting their short sighted management (worst CEO's ever).
During my first 20 years at Boeing, the primary tactic was to retain the 'core competency' tasks - things like wings, engine nacelles, the aero interface between the engine and the wing (something I worked on during my early career - amazingly complex and a small change can mean a 1% change in overall aircraft drag). Then they'd out-source the 'easy stuff'. Reportedly, when the 757 was launched, the British wanted Boeing to outsource the 757 wing to BAE in return for BA being a launch customer. Boeing refused as they calculated that is would cost $1 million recurring per aircraft to let BAE build the wing (that in 1980 dollars). Such was the Boeing expertise in designing and building wings.
After the merger with MacDac, all that changed. Boeing started following the MacDac strategy of outsourcing everything - and the 787 cluster
was the predictable outcome.
During my first 20 years at Boeing, the primary tactic was to retain the 'core competency' tasks - things like wings, engine nacelles, the aero interface between the engine and the wing (something I worked on during my early career - amazingly complex and a small change can mean a 1% change in overall aircraft drag). Then they'd out-source the 'easy stuff'. Reportedly, when the 757 was launched, the British wanted Boeing to outsource the 757 wing to BAE in return for BA being a launch customer. Boeing refused as they calculated that is would cost $1 million recurring per aircraft to let BAE build the wing (that in 1980 dollars). Such was the Boeing expertise in designing and building wings.
After the merger with MacDac, all that changed. Boeing started following the MacDac strategy of outsourcing everything - and the 787 cluster
was the predictable outcome.
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Money Money Money
An old Abba tune just entered my head!
So Boeing wants to make a new plane, not fancy and modern. Just a money maker.
Not very ambitious CEOs they have. For the company! Privately the are doing ok I suppose.
A bit sad.
Imagine what Boeing could do if they ( CEOs) could grow a pair!
So Boeing wants to make a new plane, not fancy and modern. Just a money maker.
Not very ambitious CEOs they have. For the company! Privately the are doing ok I suppose.
A bit sad.
Imagine what Boeing could do if they ( CEOs) could grow a pair!
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Now the media is claiming these outsourced suppliers/engineers actually have more skill and knowledge than Boeing... Somehow I doubt that.
